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Thomas Manufacturing produces a chemical pesticide and uses process costing. There are three processing departments-Mixing, Refining and Packaging, On January 1, the Refining Department had 2000 gallons of partially processed product in production. During January, 36,000 gallons were transferred in from the Mixing Department, and 31,000 gallons were completed and transferred out. At the end of the month, there were 7000 gallons of partially processed product remaining in the Refining Department. See additional details below. Refining Department, beginning balance at January 1 Quantity: 2000 units (partially processed) Cost: $15,600 of costs transferred in $1600 of materials cost $4500 of conversion cost $21.700 total account balance Costs added during January Cost of units transferred in $222,400 Direct materials cost $46,000 Conversion cost $93,750 Refining Department, ending balance at January 31 Quantity 7000 units (partially processed) Percent complete for materials cost: 85% Percent complete for conversion cost: 70% What was the cost per equivalent unit with respect to direct materials costs for the Refining Department in the month of January? Use the weighted- average method. (Round your calculations to the nearest cent.) 51.25 $1.29 $2.74 56.80

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